Exit and Growth Strategies for Middle Market Businesses

The report below provides a good overview of the first quarter M&A activity in the Technology, Media and Telecom Industry Sector.M&A activity for North American based target companies in the Technology, Media and Telcom sector sector for Q4 2017 included 420 closed deals, according to data published by industry data tracker FactSet.
One of the notable transactions of the quarter was announced in November when private equity group Thoma Bravo, LLC acquired Barracuda Networks, Inc. for US$1.5 billion in cash. Under the terms of the transaction, Thoma Bravo paid US$27.55 in cash per Barracuda Networks share. This represented a 22.5% premium to Barracuda Networks’ 10-day average stock price prior to November 27, 2017. Barracuda Networks designs and delivers powerful yet easy-to-use security and data protection solutions. It offers cloud-enabled solutions that empower customers to address security threats, improve network performance and protect and store their data.
The technology sector continues to evolve as companies focused on the Internet of Things (IoT) continue to garner interest from investors and strategics looking acquire greater capabilities.

Industry Indicators

Total US consumer spending, a driver for the IT needs of consumers, rose 1.7%, primarily from services expenditures, in December 2017 compared to the same month in 2016.

US corporate profits, an indicator for corporate investment in information technology, rose 5.4% in the third quarter of 2017 compared to the same period in 2016.

Total US revenue for computer systems design and related services rose 2.3% in the third quarter of 2017 compared to the previous year.

The Middle Market Pulse, an executive brief, provides M&A market insight for c-level management, shareholders and their professional advisors. To receive this free monthly report by email, please complete the following form: